Hardwood Floors February/March 2026

By Santo Torcivia

Major uncertainties and risks facing the U.S. economy and this forecast are the impact of the wide-ranging tariffs, the federal government budget cuts, and federal labor lay-off initiatives being instituted by the Trump Administration. The tariffs, by far, present the greatest unknowns and the highest risks, including: • Tariffs could create chaos for supply chains, dislocate manufacturing and sales, and kick-up inflation. Also, tariffs could worsen fiscal deficits, adding pressure to long-term interest rates. The current trade-weighted tariff rate is 26 percent among the largest nations importing flooring into the U.S. This rate is likely too large to be wholly absorbed by importers. • Uncertainty about tariffs and general economic conditions is causing both consumers and businesses to hold back on spending and investment until more clarity is reached. • Inflation remains a threat if current policies to reduce it are unsuccessful. • Unemployment remains stable and positive and will remain that way through 2030.

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